Calculate Vertical (common size) analysis of K Corp for the 2019 and 2018 years. (5 marks) b) Calculate Horizontal (trend analysis of K Corp for the 2019 and 2018 years. (5 marks) c) Based on your results in a) and b), identify five (5) specific accounts from the income statement and/or the statement of financial position you would investigate and explain why you would investigate them (what issue do you feel may have occurred between different accounts to result in the change). Do NOT recommend looking at totals or subtotals. It must be individual accounts. marks) (5 Which accounts require additional investigation and why. Horizontal Analysis 2019 - 2018 Vertical Analysis 2019 2018 Kirchoff Corporation Income Statement Year Ended December 31 2019 2018 Revenue 1,100,000 950,000 Cost of goods sold 650,000 635,000 Gross profit 450,000 315,000 Operating expenses 285,000 215,000 Profit from operations 165,000 100,000 Interest expense 12.000 10,000 Profit before income tax 153,000 90,000 Income expense tax 38,250 22,500 Net income 114,750 67,500 Kirchoff Corporation Statement of Financial Position December 31 2019 2018 Assets Cash 50,000 49,000 Accounts receivable 125,000 111,000 Inventory 400,000 300,000 Long-term investments 50,000 50,000 Property, plant and equipment (net) 685,000 475,000 Total assets 1,310,000 985,000 Liabilities and Shareholders' equity Liabilities Current liabilities 265,750 265,000 Non-current liabilities 159.500 125,000 LE Total liabilities 425,250 390,000 Ishte Shareholders' equity Common stock 600,000 400,000 Retained earnings 284,750 195,000 Total Equity 884,750 595,000 Total Liabilities and Equity 1,310,000 985,000